SANJIV SRIVASTAVA:

This appeal is directed against Order-in-Appeal No.202-ST/APPL/LKO/2025 dated 19/06/2025 passed by Commissioner (Appeals) Customs, Central Excise & CGST, Lucknow. By the impugned order, Commissioner (Appeals) has modified the Order-in-Original No.74/JC/LKO/ST/2023-24 dated 22.02.2024 as follows:

“5.7 In view of above total liability of Service tax come to Rs. 12,07,371/- [Rs. 235/ Rs. 2,97,273/- + Rs. 9,09,863/-]. I find that appellant had filed the ST-3 returns for the impugned period and paid the Service tax Rs. 22,816/-. Thus, net service tax liability comes to Rs. 11,84,555/- [Rs. 12,07,371/- Rs. 22,816/-) along with interest. Accordingly, the penalty imposed under Section 78 of the Act is equal to the aforesaid liability of Service tax.

5.8 I find that appellant has deposited the Service tax Rs. 4,05,146/-, interest Rs. 3,51,564/-and penalty Rs. 1,01,287/- vide challan dated 08.12.2023. The said deposited amount is appropriated against the aforesaid liability of Service tax, interest and penalty respectively. I also find that penalty under Section 77 (1)(c) has been imposed for non-submission of information. I find that appellant has submitted the reply of Show cause notice and also appeared for personal hearing before adjudicating authority. Thus, penalty imposed under Section 77(1)(c) of the Act is not proper in the eyes of natural justice. Hence, I set aside the penalty imposed under Section 77 (1) (C) of the Act.”

2.1 Appellant is engaged in providing services under "tour operator services, air travel agent services" and are registered with the Service Tax department on vide Service Tax Registration No.ACFPR3748FST001.

2.2 On comparison of information received from the Income Tax department for the financial year 2016-17, with the details as provided by the appellant in their ST-3 following was observed

2.3 A letter dated 13/07/2021, reminder dated 08/09/2021 and summon dated 13.09.2021 was issued to the appellant for furnishing Balance Sheet, Service Tax returns, Ledger Account, Bank Statement, Copies of invoices for the financial year for verification of their service tax liability. Appellant had not provided any information.

2.4 Thus as per the available data service tax liability for the period 2016-17 was calculated as follows:-

2.5 As the appellant have suppressed material facts from the department by suppressing the gross value of services provided by them they have contravened the provisions of Chapter V of Finance Act, 1994 and Rules made thereunder with the intention to evade payment of due service tax. If the information as above was not received from the income tax department the fact of evasion of service tax would have remained unearthed. Therefore the proviso to section 73 (1) for making demand by invoking extended period of limitation was applicable in the facts of this case. For acts of various contravention and suppression of the value of services provided appellant was liable to penal action under Section 78 and 77(1)(C)(i)(ii)(iii) of the Finance Act, 19094.

2.6 Show cause notice dated 08.10.2021 was issued to the appellant asking them to show cause as to why:-

(i) The Service Tax amounting to Rs.91,08,575/- (Rupees Ninety One Lakh Eight Thousand Five Hundred Seventy Fiveonly) including various cess as applicable should not be demanded and recovered from them under proviso to Section 73(1) of the Act, 1994 read with Section 142, 173 & 174 of CGST Act, 2017.

(ii) The due interest on the amount of Service Tax mentioned at (i) above should not be demanded and recovered from them under Section 75 of the Finance Act, 1994 read with Section 142, 173